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Well i'll not go much into theory part because to me practical is more important than theory. So today i'll show you some very good use of gpedit.msc.
All of you are very well aware of desktop and its related activities. Now we are going to play with these activities. First i,m giving you a list of activities we are going to do:-
-Hide internet explorer from desktop
-Hide computer icon from desktop
-Hide recycle bin from desktop
-Hide network places from desktop
-Hide all icons from desktop
-Prevent dragging,adding on desktop
-Remove desktop cleaning wizard

Now how to do this.All you have to do is:
--goto run and type gpedit.msc
-goto user configuration->administrative templates->desktop
-on right pane you got all options.Just double click on your target to get this window:



An example of how to remove desktop cleaning wizard is shown in FUN WITH GPEDIT section. Just click on blue link given above to open it.

Most Important note is that it is not all. You can explore this by your own to get interested facts about operating system working. So keep doing...